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The inflation rate eased for the fourth successive month and stood at 8.2% in May 2020 despite a seasonal spike in prices of essential food items, Pakistan Bureau of Statistics (PBS) reported on Monday. While directing preparation of combating corona budget for 2020-21, Prime Minister Imran Khan has assigned Adviser to PM on Finance Dr Abdul Hafeez Shaikh for convincing the IMF for slashing down the FBR’s tax collection target from Rs5,103 billion to Rs4,800 billion for next fiscal year. The federal government’s borrowing for budgetary support from scheduled banks witnessed a significant growth during this fiscal year (FY20), mainly due to rising current expenditures followed by COVID-19 pandemic and revenue shortfall.
Market View: The KSE100 Index gained 90.0 points during Monday’s trading session. We expect the market to remain stable and range bound in the upcoming session.
Commodities:
Brent oil (USD/bbl): 35.68 (+0.65% D/D)
Crude oil (USD/bbl): 38.70 (+0.99% D/D)
Gold (USD/oz): 1,750.60 (+0.0171% D/D)
National News
Inflation eases to 8.2% in May
The inflation rate eased for the fourth successive month and stood at 8.2% in May 2020 despite a seasonal spike in prices of essential food items, Pakistan Bureau of Statistics (PBS) reported on Monday.
GDP growth provisionally estimated at -0.38pc
Preparation of the economic survey for the current fiscal year – based on the usual practice of basing projections for the entire year on nine month data – is underway, but with the continued worsening Covid-19 fallout (commencing from the tenth month) on key macroeconomic indicators would have made any earlier projections unrealistic.
Budget 2020-21: IMF to be asked to slash FBR target from Rs5,103 bn to Rs4,800 bn
While directing preparation of combating corona budget for 2020-21, Prime Minister Imran Khan has assigned Adviser to PM on Finance Dr Abdul Hafeez Shaikh for convincing the IMF for slashing down the FBR’s tax collection target from Rs5,103 billion to Rs4,800 billion for next fiscal year.
Pakistan may end special tax system
Pakistan is considering ending preferential tax treatment for foreign companies working in the country aimed at bringing them on a par with domestic firms and getting an additional Rs22 billion in revenues from them in the next fiscal year.
Deal worth $2.4b signed for Kohala power project
A tripartite agreement has been finalised between China Three Gorges Corporation, the government of Azad Jammu and Kashmir (AJK) and Private Power and Infrastructure Board (PPIB) for implementing the 1,124-megawatt Kohala hydroelectric power project in AJK under the China-Pakistan Economic Corridor (CPEC) framework.
July 1 to May 15 period: Govt borrows Rs1.9trn from banks for budgetary support
The federal government’s borrowing for budgetary support from scheduled banks witnessed a significant growth during this fiscal year (FY20), mainly due to rising current expenditures followed by COVID-19 pandemic and revenue shortfall.
Private sector credit drops 53pc to Rs265bln in July-May
Private sector credit sharply fell 53.3 percent to Rs265 billion in almost 11 months as high interest rates made funds largely unattractive amid downside risks to growth, the central bank’s data showed on Monday.
After Ferozsons, Searle jumps into the remdesivir market
As the world worries about the coronavirus pandemic and how to beat back covid-19, Pakistan now apparently has not one but two drug companies that have the ability to offer a treatment for the disease, though both are linked to the same US-based pharmaceutical giant that has developed the closest thing to a cure.
$9.2bn ML-1 project under CPEC planned to be executed in Jan 2021
The $9.2 billion Main Line (ML-1) project under the China-Pakistan Economic Corridor (CPEC) is planned to be executed in January 2021, if the PC-1 of the project is approved in the upcoming Central Development Working Party (CDWP) meeting scheduled for tomorrow (Wednesday).
Panasonic, PEL partner up
Panasonic Marketing Middle East and Africa (PMMAF) has partnered with Pak Elektron Ltd (PEL) to offer a diverse range of consumer electronic items in the Pakistani market.
International News
Asia Pacific stocks mixed as U.S.-China tensions linger
Stocks in Asia Pacific were mixed in Tuesday morning trade as tensions between the U.S. and China continue to linger.
Oil prices hold ground ahead of OPEC+ meeting on extended output cuts
Oil prices rose in early trade on Tuesday, with traders waiting to see whether major crude producers agree to extend their huge output cuts to shore up prices at a meeting expected later this week.
KASB Research
